Ryanair hit over subsidies fears

SHARES in Ryanair, Europe's largest low-cost airline, dropped 23 cents to e6.73 early today on renewed fears that it is about to lose out in a crucial European Commission ruling that subsidies it received to fly into Belgium's Charleroi airport were illegal.

The decision, expected later this month, could force the Irish-based airline to pay back some of the handouts it received and could prove a costly blow to the way it has operated and grown into one of the biggest success stories across the Continent.

An unfavourable ruling by the commission would cast doubt on Ryanair's ability to expand by flying into less popular airports across Europe. But chief executive Michael O'Leary has always denied that this would curtail growth. He also said Ryanair would challenge any attempts to reclaim money from it through the courts.

Rival easyJet came snapping at the heels of Ryanair and British Airways last month after its passenger numbers rose by 17.8% in the year to October. That took the total to 1.92m, a figure that is expected to grow once the airline launches 11 new routes in and out of Berlin next May.

Ryanair had 2.07m fare paying passengers in October, while BA managed 2.08m.